The good news for local commercial and tourism interests is that the impressive sevenstorey hotel on the banks of the Garavogue river will now open for business on 28 November.

Patrick O'Donoghue, managing director of the Gleneagle Group, which operates four hotels in the Killarney area, says he is looking forward to "joining the hotel and tourism sector in Sligo and helping it thrive in the months and years ahead".

"We have been seeking to expand our group to other locations for some time now and the highly contemporary Silver Swan met all our requirements."

Two weeks before the original scheduled opening date of 14 October, an unexpected announcement from the Ramada Group . . . the second-largest hotel group in the world . . . indicated that the company was no longer interested in managing the premises. Speaking on local radio, the company's Cork-based Irish franchise holder, Michael Knox-Johnston, said the group had a "stringent brand standard" which it feared would not be met.

While no specific details were available to indicate what aspects of the building were causing concern for the hotel group, local speculation centred on issues related to the basement area.

However, the developers of the project, Travac Developments Ltd, said, "The hotel has been planned, designed and built to meet the stringent building regulations in accordance with current code of practice.

"Our team are working extremely hard to ensure that Sligo city centre will have a premises to be proud of, which, when complete, will service the needs of both residents and visitors alike."

Patrick O'Donoghue says operating the Gleneagle group's first hotel outside Munster will present a particular challenge. "All our properties are Killarney-based, so distance will be an issue, at least initially. However, it will be an advantage to us that our general manager, Roisin Buckley, is from Sligo, so we'll be able to call on her knowledge of the town, at least while we're getting up and running.

"From the point of view of marketing and financial control we can draw on the experience acquired running our Southern operations."

The new hotel, which is likely to trade as The Swan, incorporates 116 guest rooms, a groundfloor bar and restaurant with views of the river, a first-floor cafe bar-cum-evening venue and a range of executive conference suites for up to 250 delegates. Complimentary broadband internet access and extensive underground car-parking are also available.

"It's a boutique-style hotel with a very high design element." says Patrick O'Donoghue.